The Japanese yen fell today as markets switched into a risk-on mode on the reports that Italy will change its budget plans to avoid clash with the European Union. The news were conflicting, though.
Italy’s plans to approve a budget with a 2.4% deficit of gross domestic product drew heavy criticism from EU officials, and there were reports that the Italian government is going to reduce the deficit. Yet according to the most recent news, Deputy Italian Prime Minister Luigi Di Maio said that the 2.4% figure remains in the budget, at least in 2019:
*ITALY DI MAIO: 2019 DEFICIT AT 2.4% CONFIRMED
*ITALY DI MAIO SAYS GOVT MULLING CUTTING DEBT/GDP AFTER 2019
— Michael Hewson ð¬ð§ (@mhewson_CMC) October 3, 2018
So far, the market did not react to the new development.
USD/JPY rose from 113.62 to 113.83 as of 10:23 GMT today. EUR/JPY gained from 131.18 to 131.57, touching the high of 131.98 intraday.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.